Victoria (VCP) AI Stock Analysis

• Market Cap: £42.97M
• Dividend Yield: N/A
• Average Volume (3M): 133.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: -9.72%
• EPS Growth: 10.94%
• Country: UK
• Employees: 5,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.03
• Shares Outstanding: 115,347,460
• 10 Day Avg. Volume: 121,648
• 30 Day Avg. Volume: 133,438
• PEG Ratio: >-0.01
• Price to Book (P/B): -0.45
• Price to Sales (P/S): 0.11
• P/FCF Ratio: -1.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £170.00
• Price Target Upside: 318.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: 36.00p ▼(-11.44% Downside)

Victoria's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and high leverage. Technical indicators suggest a bearish trend, and valuation metrics are unattractive due to negative profitability. While strategic initiatives from the earnings call show potential, they are not enough to offset the current financial and market challenges.

Positive Factors

Operational Efficiency Initiatives

Victoria's focus on operational efficiency, including projects like the V4 plant in Spain and manufacturing transitions, is expected to yield long-term cost savings and margin improvements, enhancing competitive advantage.

Debt Management Success

By extending debt maturity to 2028, Victoria improves its financial stability and reduces refinancing risk, allowing more focus on strategic growth and operational improvements.

Cash Flow Improvement

Improved free cash flow indicates better cash management and operational efficiency, providing Victoria with more flexibility for strategic investments and debt reduction.

Negative Factors

Revenue Decline

The decline in revenue reflects challenges in demand and market conditions, potentially impacting long-term growth and profitability if not addressed.

Increased Net Debt

Rising net debt levels increase financial risk and limit Victoria's ability to invest in growth opportunities, potentially affecting future financial health.

Challenges in Belgium Operations

Operational inefficiencies during the transition period may lead to short-term disruptions and cost overruns, impacting overall operational performance.

Victoria Business Overview & Revenue Model

Company Description

Victoria (VCP) is a leading global manufacturer and supplier of carpets and floor coverings, specializing in the design, production, and distribution of a diverse range of flooring solutions including carpets, luxury vinyl tiles, and synthetic grass. Operating across various sectors such as residential, commercial, and hospitality, Victoria focuses on delivering high-quality products that cater to the evolving needs of its customers while emphasizing sustainability and innovation in its offerings.

How the Company Makes Money

Victoria generates revenue primarily through the sale of its flooring products to both direct customers and wholesale distributors. Key revenue streams include residential flooring sales, which cater to homeowners and contractors, and commercial flooring solutions for businesses and large-scale projects. The company also benefits from strategic partnerships with retailers and distributors that enhance its market reach. Additionally, Victoria's focus on expanding its product line and entering new markets, along with its commitment to sustainability, strengthens its competitive edge and contributes to its earnings.

Victoria Financial Statement Overview

Summary

Victoria is facing significant financial challenges with declining revenues, negative profitability, and high leverage. The income statement shows negative revenue growth and deteriorating profit margins. The balance sheet is highly leveraged with negative equity, and while there is some improvement in cash flow metrics, the overall financial health is concerning.

Income Statement

Victoria's income statement shows declining revenue and profitability. The company experienced a negative revenue growth rate of -6.36% in the most recent year, and net profit margins have deteriorated significantly to -23.65%. The EBIT and EBITDA margins are also negative, indicating operational challenges. The gross profit margin remains relatively stable but is insufficient to offset the overall losses.

Balance Sheet

The balance sheet reflects a highly leveraged position with a negative stockholders' equity, resulting in a concerning debt-to-equity ratio of -3.57. Return on equity is positive due to negative equity, but this is misleading as it indicates financial distress rather than profitability. The equity ratio is negative, highlighting the company's reliance on debt financing.

Cash Flow

Cash flow analysis reveals a significant improvement in free cash flow growth, but the operating cash flow remains negative. The free cash flow to net income ratio is high at 36.09, suggesting that cash generation is better than accounting profits indicate, but the overall cash flow situation is unstable.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.08B	1.12B	1.27B	1.48B	1.02B	662.30M
Gross Profit	317.30M	336.10M	390.80M	402.30M	324.60M	208.10M
EBITDA	-13.80M	-100.90M	66.90M	91.90M	140.60M	111.80M
Net Income	-231.20M	-264.40M	-108.00M	-91.80M	-12.40M	2.80M
Balance Sheet
Total Assets	1.34B	1.33B	1.63B	1.87B	1.64B	1.35B
Cash, Cash Equivalents and Short-Term Investments	94.00M	77.60M	94.80M	93.30M	273.60M	348.80M
Total Debt	1.31B	975.50M	934.80M	1.20B	984.70M	834.80M
Total Liabilities	1.76B	1.60B	1.65B	1.75B	1.44B	1.15B
Stockholders Equity	-411.80M	-273.10M	-22.20M	119.00M	202.60M	208.20M
Cash Flow
Free Cash Flow	-61.70M	-79.40M	-7.30M	-10.50M	14.80M	29.00M
Operating Cash Flow	4.80M	-2.20M	55.20M	89.10M	68.10M	57.50M
Investing Cash Flow	-50.70M	-32.00M	-38.10M	-218.60M	-188.60M	-45.70M
Financing Cash Flow	52.30M	16.90M	-17.90M	-41.10M	30.40M	163.00M

Victoria Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:VCP, the sentiment is Negative. The current price of 40.65 is above the 20-day moving average (MA) of 37.17, below the 50-day MA of 44.76, and below the 200-day MA of 67.14, indicating a neutral trend. The MACD of -2.04 indicates Negative momentum. The RSI at 43.28 is Neutral, neither overbought nor oversold. The STOCH value of 51.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:VCP.

Victoria Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFX	78 Outperform	£49.07M	8.77	19.42%	0.55%	2.64%	23.89%
CHH	64 Neutral	£37.39M	7.38	8.35%	7.98%	-3.45%	-35.25%
LIKE	64 Neutral	£54.83M	40.74	3.37%	1.76%	9.26%	31.71%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SDG	49 Neutral	£31.44M	-2.05	-19.58%	3.45%	-4.23%	-435.86%
HEAD	47 Neutral	£38.52M	-0.84	-19.28%	―	-11.65%	-273.57%
VCP	40 Underperform	£42.97M	-0.18	―	―	-9.72%	10.94%

Victoria Corporate Events

Victoria PLC to Release Interim Financial Results on 17 December 2025

Victoria PLC has announced that it will publish its interim financial results for the six-month period ended 27 September 2025 on 17 December 2025. The company will hold a live presentation of the results, accessible to existing and potential shareholders, led by its executive team. This announcement is part of Victoria’s ongoing efforts to maintain transparency and engage with investors, potentially impacting its market positioning and stakeholder relations.

Victoria PLC Boosts Earnings with New Ceramics Production Line

Victoria PLC has announced the commissioning of a new ultra-efficient V4 production line at its Keraben subsidiary in Spain, which is expected to enhance the company’s earnings by approximately €15 million annually. This development is part of Victoria’s strategic initiatives to improve earnings and operational efficiency within its Ceramics Division, positioning the company for a potential recovery in demand and increased profitability over the medium term.

Victoria PLC Reports Mixed Half-Year Performance with Strong EBITDA Growth

Victoria PLC reported a mixed performance in its half-year trading update, with revenue slightly behind last year due to soft market demand, though improved selling prices and cost savings helped boost underlying EBITDA to £53m. The company successfully completed self-help initiatives for £20m savings in FY26 and is progressing on further cost-saving measures, including relocating rug production to Turkey. Despite external risks, Victoria expects to improve margins and EBITDA, with a focus on cash generation and credit rating improvement. The company also refinanced its 2026 debt maturities, enhancing liquidity and strengthening its capital structure.

Victoria PLC Withdraws Note Exchange Offer Amid Strategic Review

Victoria PLC has decided to withdraw its offer to exchange its outstanding senior secured notes due 2028 for new second-priority notes. This decision follows feedback from certain bondholders, suggesting there may be more beneficial options available. The company plans to continue benefiting from the favorable terms of the 2028 notes, which have a medium-term maturity and a 3.75% coupon rate. This move reflects Victoria’s strategic approach to managing its financial obligations and optimizing its capital structure, potentially impacting its financial stability and stakeholder confidence.

Victoria PLC Announces CEO Transition Amid Strategic Initiatives

Victoria PLC announced the upcoming retirement of CEO Philippe Hamers, who has led the company for nearly nine years and successfully completed the refinancing of its 2026 debt maturities. The board is set to begin the search for a successor while maintaining focus on initiatives to improve annual EBITDA by £70 million, generate cash, and rebuild the company’s credit rating. Under Hamers’ leadership, Victoria transformed into Europe’s largest integrated flooring group, and the company aims to continue delivering value for shareholders.

Victoria PLC Announces Strategic Debt Exchange Offer

Victoria PLC has announced a voluntary exchange offer for its 2028 Senior Secured Notes, aiming to extend debt maturity and reduce overall debt. This strategic move is expected to strengthen the company’s capital structure, reduce cash interest costs, and provide financial flexibility to invest in growth, ultimately benefiting all stakeholders.

Victoria PLC Launches Exchange Offer for 2028 Notes

Victoria PLC has announced a voluntary exchange offer for its €250 million 3¾% Senior Secured Notes due 2028, allowing eligible holders to exchange them for new Second Priority Senior Secured PIK Notes due 2031. The new notes will bear a 12% interest rate and are secured by collateral, ranking junior to super senior facilities and senior to the original 2028 notes. This move is expected to impact the company’s financial structuring and provide holders with a premium on current trading prices, although participation is limited to qualified institutional buyers and non-U.S. persons.